Danfoss – Danfoss launches construction to further expand its strong presence in China

Haiyan, China – Danfoss, the Danish multinational engineering group, today announces the beginning of construction to further expand its presence in China at a groundbreaking ceremony co-hosted with the local government.

Danfoss operates eight production and innovation facilities in Haiyan, situated in China’s Zhejiang province. Covering an area of 135,000 sqm, the new campus to be constructed will be one of the biggest production sites in Danfoss’ history.

The new campus will be used to capture the growth potential unleashed by China’s transition to a green, low-carbon economy.

Eric Alström, President, Danfoss Power Solutions, (as a representative of Danfoss’ Group Executive Team) says:”As China continues its transition to a green, low-carbon economy, the Chinese market is becoming increasingly important for our global business success. Over the years, we’ve been investing continuously in the market, especially in capacity, innovation, and digitization as well as state-of-the-art technology production. This expansion project will support our business growth and our transition in China from “Made in China’ to “Created in China.”

Thomas Østrup Møller, Ambassador of Denmark to China; Chen Wei, Party Secretary of Jiaxing City and Wang Suishe, Party Secretary of Haiyan County attended the ceremony together with Eric Alström, President, Danfoss

Power Solutions; Arthur Xu, President of Danfoss China, among other Danfoss executives and guests.

Torben Christensen, Chief Sustainability Officer & Head of Global Services in Danfoss, says:”The new campus will be a perfect showcase for our decarbonization solutions and ‘three-step decarbonization approach’, which has proved to be an effective roadmap for industry to decarbonize their growth quickly and cost-effectively with solutions readily available.”

In line with Danfoss’ commitment to decarbonize global operations by 2030, the campus is being constructed with energy efficiency in focus. The site will operate with Danfoss’ three-step decarbonization approach ‘Reduce, Reuse and Re-source’.

Energy efficient technologies will be applied to keep the energy consumption down, and – where possible – energy will be reused and sourced from renewable sources. Danfoss is negotiating details regarding a long-term green power purchase agreement, aiming to have the campus fully covered with green power when it starts operations in 2025.

The expanded Danfoss footprint will showcase to customers how the company has decarbonized its own operations as well as demonstrate how they can apply the same three-step approach to their own facilities. This will help generate sales and create momentum for business growth over the long term.

The Danfoss Haiyan Campus is an important innovation and manufacturing base in the company’s global footprint, boasting application development centers on par with the company’s campuses in Europe and the United States.

Arthur Xu, President of Danfoss China, says:”The expansion project is a solid step of our committed development in China, especially in the areas of smart manufacturing, innovation, and sustainability. It is also a strategic move driven by close collaboration between Danfoss and the Haiyan government to accelerate the development of green energies and the development of the new quality productive force.”

Thomas Østrup Møller, Ambassador of Denmark to China, says:”Green transition has become very important for China’s development. Danfoss has supported the transition of China for decades by investing in especially Zhejiang, by building state of the art industrial complexes, and by offering the solutions needed to decarbonize China through ’reduce, reuse and re-source’.”

Wang Suishe, Party Secretary of Haiyan County, says:”Haiyan cherishes our cooperation with Danfoss, and we are dedicated to offering high-quality services to the construction of the expansion project and Danfoss’ development.”

The project is expected to be completed in Q2 2025.